Fuel payment issues with oil PSUs will be resolved early: Air India

Late August, the three oil companies had stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults.

Published: 13th October 2019 08:04 PM  |   Last Updated: 14th October 2019 11:36 AM   |  A+A-

Air India flight

Air India flight (File Photo | PTI)

By Express News Service

NEW DELHI: Days after major oil PSUs issued Air India an ultimatum of stopping fuel supply to its aircraft at six major airports if it failed to pay their dues by October 18, the State-owned carrier on Sunday said the issues with oil companies were being sorted out and would be resolved soon.

“Air India has taken all measures to ensure that flights are not disrupted and passengers do not face inconvenience at all. There is no reason for any concern to the esteemed Air India passengers,” a spokesperson of the airline said.In last few months, Air India has been facing issues with the oil companies over unpaid fuel bills and delayed payments.

Last week, three government-owned oil marketing firms — Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd —had told the carrier that if it did not make the monthly lump sum payment, they will stop fuel supply from October 11 at “six major domestic airports”.
Subsequently, Air India sent a letter to the OMCs requesting them not to stop the fuel supply, following these companies deferring their decision on snapping fuel supply till October 18.

In August, the three fuel retailers had stated that Air India owed them Rs 5,000 crore, with payments being delayed by almost eight months. On August 22, some oil companies stopped fuel supplies to Air India aircraft at six airports —Kochi, Mohali, Pune, Patna, Ranchi and Vizag — over payment defaults. They resumed the supply on September 7 following the intervention of the Ministry of Civil Aviation.


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